The Pulaski citizen. [volume] (Pulaski, Tenn.) 1866-current, 1887-03-17
Building Societies.

The objects and working of build
ing associations is from the pen Of
j. Brown, secretary of the
Pennsylvania league Of building
societies. These associations have
done a great work in promoting the
building of homes for and by work
ingmen, mechanics and others of
small means. Mr.. Brown says:
There is nothing mysterious
about building society, as some
people imagine, nor is it a wild
scheme of communism. but bust
ness partnership that looks to the
right development of individual
character and enterprise, and holds
forth to honest industry its honest
reward, and to the lowest the hope
of promotion. 1t relieves the poor
of the degrading privatlon of their
lot and enhances their comfort, re-
spectabillty and usefulness. The
first object of these associations is
to enable every man to become his
own landlord-to purchase home
for himself and family by simply
paying into joint concern. for few
years but little if any more than he
would otherwise pay in rent. By
uniting the savings of their indiyid-
ual members a capital is created
and distributed into and among the
hands that rear it.
1t is evident that many persons
combining together could make
small sums of money far more pro-
ductive than these sums could be
made separately. By the present
system of house renting, the many
pay rents for the benefit of the few.
Through the building association
the many combine together so as to
put the rents in their own pockets.
1t is, therefore, the aim of these as
sociations to enable persons In the
humber ranks of life to become
owners of real property instead of
mere renters of it.
Hearing the great interest your
readers have manifested in these
little "poor mans" bank, or build
ing societies, and knowing that this
peculiar method of saving money
and securing homes is making rap
id progress in many southern and
western states, / venture to present
below short explanation of the
scheme.
Shares-a share of stock, so call
ed, is the accumulation of 81 per
month, until final value of 5000 is
reached, by adding together the
monthly deposits and the gains.
Shareholders or members-all
who join building society are re-
CURED to contribute ST. or more per
month, according to their saving
ability.
Dues-In building society Ian
guage these monthly deposits are
called dues.
Monthly receipts-The monthly
receipts are loaned to members on
ly, in sums of 5000 or its multiple.
Borrowers-Those who borrow
are required to furnish satisfactory
real estate security-and for each
5000 borrowed they are required to
pay ST. per month interest, besides
the other dollar which is paid to-
ward the future share of stock,
which is to become worth 5000.
The settlement-When the month
ly deposit becomes share Of stock,
namely 5000, it cancels the borrow
er's Indebtedness to that extent.
The partnershlp-The' gains are
divided so that all the money in
vested by all the members receive a
like per cent per annum for the av-
erage time of investment.
Withdrawals-The members may
withdraw their deposits after thirty
days notice, and receive all they
have paid in, with their proportion
of the gains added.
Payment of loans-The borrow
ers may repay their loans at any
time and use in part payment their
deposits on shares, with the gains
added.
The above is a simple sketch Of
the scheme
II have before me the report of a
society which was organized six
years ago, and the figures presented
are of great interest. During the
time of its existence it has